This module allows you to analyze existing cross correlation between Tuesday Morning Corporation and Franchise Bancorp Inc. You can compare the effects of market volatilities on Tuesday Morning and Franchise Bancorp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tuesday Morning with a short position of Franchise Bancorp. See also your portfolio center.Please also check ongoing floating volatility patterns of Tuesday Morning and Franchise Bancorp.

Pair Volatility

Given the investment horizon of 30 days, Tuesday Morning Corporation is expected to generate 2.34 times more return on investment than Franchise Bancorp. However, Tuesday Morning is 2.34 times more volatile than Franchise Bancorp Inc. It trades about 0.04 of its potential returns per unit of risk. Franchise Bancorp Inc is currently generating about -0.21 per unit of risk. If you would invest 525.00 in Tuesday Morning Corporation on November 9, 2016 and sell it today you would earn a total of 10.00 from holding Tuesday Morning Corporation or generate 1.9% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Tuesday Morning and Franchise Bancorp

0.08

Parameters

Diversification

Significant diversification

Overlapping area represents amount of risk that can be diversified away by holding Tuesday Morning Corp. and Franchise Bancorp Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Franchise Bancorp and Tuesday Morning is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tuesday Morning Corporation are associated (or correlated) with Franchise Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franchise Bancorp has no effect on the direction of Tuesday Morning i.e. Tuesday Morning and Franchise Bancorp go up and down completely randomly.